Crisis Exacerbates Credit Defaults

Due to the crisis affecting Nicaragua, financial institutions have started to record increases in the number of clients that are in default of their loans.

Monday, July 16, 2018

Due to the situation in the country and with the objective of favoring the debtors, the Superintendency of Banks and Other Financial Institutions and the National Microfinance Commission recently approved some temporary rules so that financial entities can modify the original conditions of the loans. 

See "Serious damage to the economy"

Regarding requests made by debtors to the financial entities, Juan Carlos López, coordinator of the Social Legal Center for Consumer Aid (CJSAC), explained to that " ... they are not being granted the six-month extension they asked for, for some the maximum that they are reducing the fees is fifty dollars of off the capital because the banks are guaranteeing the payment of interest."

See also "Crisis in Nicaragua: More Bank Branches Closing"

Lopez added that " ... even fulfilling the requirements established by regulatory bodies, mainly banks, 'they remain very attached to their daily behavior and in the worst case, nothing is being achieved and that is why the lists (of debtors published by banks) continues to grow.'The rigidity of banking conditions has meant that many clients 'who are still able to pay a fee now can not afford it and may not be able to pay anything within three months'. " 

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